Nissan

The small car segment in India will soon see the arrival of yet another premier Nissan with its Micra [images]. Slated for July, the launch will be held on 14th to be rolled out by Nissan Motor India, the subsidiary of Nissan Japan. According to the industry analysts, Nissan’s Micra may cost Rs4 lakhs (hatchback) based on the version told by Nissan itself- the car may counter Maruti’s Swift, Hyundai’s i10 and i20 which are in the price range of Rs3.44 –R6.95 lakhs. Nissan began the bookings for Micra once the Bollywood fame Randhir Kapoor was focused the brand ambassador. There are 1049 bookings, said the company. The company’s CEO&MD for India said the response shown to Micra has made the company make penetrating entry after the formal launch next month. The Chennai unit will be tuned to produce 80000 units of Micra meant for domestic and export markets. Micra will be exported to 100 countries spread in Europe, Middle-East and Africa. Nissan plans to produce Micra in five countries China, Thailand, India and Mexico while the fifth one to be located soon. Nissan’s immediate target for the Indian market will be 1lakh units by 2013, which will include Micra and nine new launches.

Cashless ownership offer from GM to cover all models

The US car maker General Motors has launched an easy and beneficial scheme for its customers who can avail free maintenance and service. The scheme, cashless ownership, is applicable for customers who pay Rs13499 as one time payment and they can avail three year full maintenance and free service (or 45000km) from any service outlet of the company in India. The scheme will be applicable for all ranges from GM including the Chevrolet Beat, said its VP. There will be a refund of difference amount if the cost exceeds the net maintenance expense accounted for three years. The scheme made the similar one, Chevy OK, popular which is functioning in 41 centres in India. The models in Chevy include Cruze [images], Aveo [images], Aveo UV-A [images], Spark [images], Captiva [images], Beat [images], Tavera [images] and Optra [images].

Proton Malaysia having hectic parleys with Indian car makers

Firm to enter the potential Indian market, the Malaysian car maker Proton is busily engaged in negotiating with key car manufacturing companies in India. Simultaneously, the company is aiming to have the deal with the UK based Lotus to roll down high-end sports car, a 5-door 1.0- 1.5 lit engine small car, and a racing car for Asia and Middle East. The MD of Proton confirmed the roll down of this car in two years and also the search for Indian firms but did not reveal the full details. He desisted from confirming the negotiations with Mahindra for Indian presence except the one happened years back. Proton’s move for a JV with Volkswagen too failed to yield result and Proton does not leave anything at a vague for Indian and the European markets. Proton is in the automotive industry for the past 27 years during which period it had its ebb and low due to its unattractive and costly models. Proton faced a sigh of relief this March as its profit rose to 22.8 million ringgit($6.87million) against a gross loss of 323 million ringgit in 2009.

South Korea

The South Korea’s second largest car maker Kia Motors is muscling its strength in India by installing a manufacturing unit. Kia is jointly owned by Hyundai, the foremost car maker of South Korea. Kia will roll down hatchbacks, entry-level sedans, compact cars followed by compact SUVs. Kia is synonymous for its high cost range and equally high esteemed versions till recently doing good show in Europe. Of late its market in Europe is on the decline and hence the diversion to Asian market, particularly India. Kia has been searching for the potential source since the economic recession. However, anything will materialize only after a comprehensive feasibility study, said an official of the company. The anticipated models may include Picanto and Proceed hatchbacks and Rio and Forte sedans.

Kia intends to counter Honda City in sedan range while the target for small cars will be Maruti Ritz [images] and Hyundai i10 [images]. In SUV range there will be Soul and Sorento to face Mahindra Scorpio [images] and Maruti Grand Vitara [images]. The year 2009 promised some good signs to the Indian car market with 25% growth and sale of 15.26 lakh units and the market seems to grow further this FY. Kia, as the global partner for Hyundai, has grabbed the sale of 1.6 million vehicles made from 14 major units spread worldwide including Australia, China, Germany and the US. Kia’s earlier attempt to roll down its products in India, four years ago, could not materialize due to poor response to it.

The present venture is to have a concrete feasibility study by a global consultancy firm. Kia took the leaf of entering the Indian market based on the consistent show of Hyundai, which has become the second largest car maker after Maruti Suzuki. Kia believes that the entry into India will boost its global trade along with the product range from Hyundai. The Hyundai Kia Automotive Group is ranked as the fourth largest car maker in the world, along with Toyota, Chevrolet and Volkswagen. Hyundai, for its own sake, hopes to overtake Maruti if Kia’s entry materializes.

TVS stops producing electric vehicles due to low demand

Sale voltage drop forces TVS to suspend supply of electric vehicles

Down with the sale volume, TVS motor company said it has stopped its production of electric vehicles. The electric vehicles range includes electric three wheelers and Scooty Teenz. As a result there won’t be any launch of electric three wheelers, said the company’s Marketing President. In addition there won’t be production of existing electric versions of scooterette which is in extinct for the past one year. TVS had planned to sell 40000 units of Scooty Teenz electric when it was launched in 2008 at Rs29900.

Not able to cope with the downward trend for electric two wheelers, TVS has now put down all its focus on its routine scooter and motorcycle ranges. Yet, the pending units of electric vehicles may be with some dealers, he added.

Hyundai launches Verna Transform

Hyundai today launched the Verna Transform in India. Verna Transform is priced between Rs6.56 lakhs and Rs9.22 lakhs. The new car — Verna Transform– will be available in two engine variants of 1.6 litre petrol and 1.5 litre diesel. “The Verna Transform is all set to boost Hyundai’s already superior line-up of products in India by raising the benchmark in the sedan segment,” Hyundai Motor India Managing Director and CEO H W park told reporters here.

Hyundai to launch Verna Transform on June 25th

The much awaited facelifted version of Hyundai Verna is all set to hit the Indian market. Hyundai will launch verna transform on June 25th. Our dealer partners have already started booking.

Click here to see pictures of Verna Transform

Click here to book Verna Transform

Ford to gesticulate more on Figo line up

The success story of Figo in the Indian market will continue to be a nice serial in the auto entertainment directed by Ford. The company is too willing to share this success with few more launches in this Figo [images] platform – a smaller version to Figo , a compact SUV and Fiesta hatchback. Ford’s small car thus projected will be on roads in the next year with the codification of “B156”. Ford has been very cautious and strategic in terms of more launches in India. Ford could not anticipate the mammoth sale return of Figo- 16000 units in a time span of 3 months- and further bookings for 21000. The launch in SUV segment will be to face the clutches induced by the supremo Mahindra and Mahindra and other major players in this segment.

Ford’s current fiasco will be to feed the demand for its Figo and future plans will be to introduce new models for every 12-18 months frequency. At the same time, the company will please the customers with their interests and wish, said a company official. The company’s MD for India had earlier hinted about the proposed launch of small car in India, other than Figo. However, this version will meet the global standards to take the company’s policy into account, he added. The proposed launches may make some improvement in Ford’s meager share of less than 3% in the Indian market. Ford seeks new favors from the equally potential market of China. Ford makes small car launches in India as an experiment which may prompt it to drive into Asian markets thereby India becoming a hub for small car similar to GM or Toyota.

M&M aims to grab two at a single shot

Mahindra&Mahindra’s negotiations with Malaysian company Proton is sincerely pointed towards twin purpose – for the probable Lotus range SUVs and small cars under an exclusive JV. This comes in the wake of Anand Mahindra’s visit to Proton’s Indonesia unit which makes Lotus cars. Previously, Lotus brand had been with Buggati which could wash it to Proton right back 1990. The deal on Lotus may be either licentious brand rights to manufacture a range of models or a JV with net business terms.

The Lotus range from Proton includes the Exige, Europa, Evora, Elise SUVs and T127 race car. Of these, Europa, also called Grand Tourer, which is a two seater could not please either people or the industry analysts chiefly due to its high price. M&M is taking its strategy to strengthen its low and high level vehicles for filling the slots in range. Lotus seems to fall on the axis of premium sector. M&M is keeping its fingers crossed over the models under Proton, particularly the Savvy versions. Built with 1200 cc Renault engine Savvy, a mini super car is capable of running 24km per liter on test conditions but a minimum of 16-18 kms under normal conditions.

This is not the first time for M&M and Proton to have talks over JV in India. The companies had tried their dialogue in 2007 which failed to yield any result. Proton in the meantime had discussions with the Indian Argentium Motors, owner of the then Daewoo brand and this too faced the hiccups. This time, M&M is clear with its objective to enter into the JV with Proton. However, M&M does not neglect the chance got for having talks with Ssang Yong, the South Korean company for the same project of cars. The Korean’s company has already chosen six of the bidders who are willing to take over the company.

Ssang Yong has been under the court’s restructuring since 2009 and the bid should be finalized in one month from now. SAIC of China has got 10% stakes in this Ssang Yong. M&M’s balance sheet and financial status is well on the mark with Rs1700 crore in addition to the debt-to-equity ratio of 0:4:1. So it likes to have soft pedaling over JVs or take overs. M&M has entered into dialogue with the Saudi company Ras Al Khaimah for the purpose of armour cars in Africa and West Asia. The Saudi company wants to utilize the expertise and experience of M&M in defence vehicles. But M&M will spell out its final verdict on the basis of its ensuing deal with Ssang Yong.